The Goldman Sachs Group, Inc. reported net earnings of US$1.8 billion for its first quarter ended March 27, on net revenues of US$9.4 billion.

The firm said Monday that net revenues in investment banking were US$823 million, 30% lower than the first quarter of 2008 and 20% lower than the fourth quarter of 2008.

For the trading and principal investments division, revenues were US$7.15 billion, compared with net revenues of US$5.12 billion for the first quarter of 2008 and negative net revenues of US$4.36 billion for the fourth quarter of 2008. Additionally, net revenues in equities were US$2.0 billion, 20% lower than the first quarter of 2008. And, net revenues in the asset management and securities services group were US$1.45 billion, 29% lower than the first quarter of 2008 and 17% lower than the fourth quarter of 2008.

“Given the difficult market conditions, we are pleased with this quarter’s performance,” said Lloyd Blankfein, chairman and CEO. “Our results reflect the strength and diversity of our client franchise, the resilience of our business model and the dedication and focus of our people. We believe these attributes position the firm to continue to create value for our clients and actively fulfill our role in the capital markets.”

Operating expenses were US$6.80 billion, 10% higher than the first quarter of 2008. Compensation and benefits expenses (including salaries, discretionary compensation, amortization of prior year equity awards and other items such as payroll taxes, severance costs and benefits) were US$4.71 billion, 18% higher than the first quarter of 2008, primarily due to higher net revenues. The ratio of compensation and benefits to net revenues was 50.0%, compared with 48.0% for the first quarter of 2008.

Separately, Goldman Sachs announced a public offering of US$5 billion of its common stock for sale to the public.

IE